T-Mobile Ditches Contracts The ‘un-carrier’ also prepares to offer the iPhone 5

T-Mobile Ditches Contracts The ‘un-carrier’ also prepares to offer the iPhone 5

Word spread quickly when T-Mobile announced plans to start selling the iPhone 5 (finally) on April 12. But the littlest carrier that could is also making news for another big reason: It’s the first American carrier going contract-free. Although Europeans have long enjoyed the ability to ditch a carrier and phone whenever they please, Americans have been roped into a contract-only system. You know the drill. You sign up for two years and get a steep discount on a phone, but in order to get a new model, you have to wait another two years (with a carrier you probably hate) before enjoying a price cut—and rinse and repeat.

Contract, Shmontract!

T-Mobile is billing itself as the “un-carrier” and offering a new Simple Choice Plan, which includes unlimited texts and calling. For the 500 MB plan, it’s just $50 a month for the first line, $30 for the second and $10 a month for additional lines. If you’re a YouTube or Spotify junkie, add Unlimited Nationwide 4G Data for an extra $20 per month, per line.

The downside is that you will now have to pay full price for a cell phone. Don’t have $500 or $600 sitting in the bank? No problem. T-Mobile has introduced an interest-free installment plan—you’ll just have to make a down payment. Even more amazing? If you already have a compatible cell phone that will work on T-Mobile’s network, you can have the device activated. This is going to change the way cell phone carriers do business in this country.

Head to T-Mobile on April 12 and either put down $99 up front and commit to 24 monthly payments of $20 (totals out to $579 over the two years, which is $70 less than buying an unlocked iPhone 5 from Apple), or ditch the $20 monthly fees and buy the iPhone 5 at full price.